please tell me the answer
M/s ABC & Co., a firm carrying on business, furnishes the following particulars for the P.Y. 2018-19.
Particulars Rs.
Book profits (before setting of unabsorbed depreciation and brought forward business loss) 2,50,000
Unabsorbed depreciation of P.Y.2012-13 1,20,000
Brought forward business loss of P.Y.2017-18 2,00,000
Compute the amount of remuneration allowable under section 40(b) from the book profit.
(a) Rs. 2,25,000
(b) Rs.1,80,000
(c) Rs.1,50,000
(d) Rs.1,17,000 (2 Marks)
Menu
remuneration of partners
Replies (6)
d is the answer as brought forward losses cannot be deducted for this computation as specified in sec 40 (b)
sir i m ca inter this question came in mock test paper but in that in answer is b means 180000
In any combination that answer won't come
Book profit before adjusting 250000
Less unabsorbed depre up to b/f loss which is up to 200000
So book profit 250000
Less unab depre 50000
Book profit = 200000
Remuneration would be 90 % of 200000 = 180000
answer is rs 180000 as per sec 32(2) of the act in which brought forward unabsorbed depreciation is allowed as deduction, but first brought forward business loss is to be notionally allowed first, therefore 250000-200000-50000(to extent of profit balance left)=0 now add back b/f loss 0+200000=200000. Now rs 200000 is the book profit and 90% of it is rs 180000
Answer is 225000 as remuneration as per 40(b) is taken on current year book profit where as setoff of previous year is as per 72
So 90% of 250000
Recent Topics :
- Query on FLAIR return
- Itr 4 problem
- Capital Gains Mismatch Due to Sale Agreement in FY
- REGARDING NRO INVESTMENT IN SHARES OF DOMESTIC COM
- DTAA benefits
- SUPPLEMENTARY AGREEMENT FOR ADDING A PARTER IN TN
- Part availmement of ITC in case of rejection of su
- Due date for itr 5 no audit with loss for fy 25 26
- Capital Gains Mismatch AIS
- Inward E-way bill from Tally Prime 7.1
Related Topics :
CAclubindia
